Turkish long product players believe perseverance will pay. Week 49 saw increase in their offers by another USD 15-20 per tonne spurred by the leaps in billet prices and strong domestic demand.
Rebar offers are priced at USD 620 per tonne FOB and wire rod USD 630-635 per tonne FOB, a climb of USD 15 per tonne from previous week. Some mills are making aggressive gesticulations of touching USD 640 per tonne and USD 650 per tonne respectively but it acceptance is doubtful.
Ironically Turkish square billet is available at prices just below by USD 30-35 per tonne lower than rebar at USD 595-605 per tonne FOB. It has given elbow room to producers to divert some volume as billet export and focus rebar volumes domestically till the market comes to terms.
However, the competition in semis is stiff and billet prices from Black Sea have even surpassing rebar levels. Buyers are opting for rebar over billets which might prove to be its own undoing in the long term.
The weeks before the X-mas and New Year holidays promises to be full of challenges for the suppliers as the buyers in UAE and neighbouring GCC countries still live in the hangover of sluggishness delving into occasional imports as domestic mills prices are at par with import offers. Moreover the stockists are still weary of major bookings lest they land up with un -liquidated inventory. Iran having lost steam and maintaining a unpredictable hue is not a favored destination anymore.